Coveo Positions Itself to Fend off Enemies
June 4, 2018
Coveo, one of the numerous players in the race for AI supremacy, took a massive leap forward recently. By securing some substantial investments, the company is poised to make a big splash in the field. However, we are not certain money is the answer to all their concerns, after reading a recent press release on their site, “Coveo Announces $100 Million Investment Led By Evergreen Coast Capital.”
According to the story:
“Coveo, a recognized leader in AI-powered insight, recommendations and search engines, has secured a $100 million investment from Elliott Management for a 27% stake in the company. The investment was led by Elliott’s Menlo Park, California-based private equity affiliate, Evergreen Coast Capital.”
Nice work if you can get it, to be sure. However, we will be curious whether or not this money makes much of a dent in the market. For instance, competition like Elastic have been gaining ground and Algolia are actually acquiring other companies in an effort to better position themselves. Keep an eye on this fight, because we suspect the company that comes out on top will begin making a major impact on our daily lives through their AI offerings.
One final thought: Will Coveo and companies like Attivio and LucidWorks be able to generate sufficient revenue to pay off the investors and generate a sustainable revenue stream? From our vantage point 45 minutes from Churchill Downs where gambling is a way of life, we think the odds are long, very long.
Perhaps a larger company will buy one of these three firms, allowing the senior managers to have a big payday and retire. Dassault Systèmes, Hewlett Packard, IBM, and Oracle have expensive search stallions in their stable. We assume there will be other prospects if the revenue race stumbles.
Patrick Roland, June 1, 2018
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